1) On-market
- obviously, the easiest source for deal-flow
- use a meta-search engine like Centurica’s Marketwatch to find listings
- double-check, if the
meta-search is covering all marketplaces that are of relevance to you - depending on your asset class, there might be Facebook groups as well – set up alerts, timing is always critical in M&A
2) M&A advisors
- facilitating a steady flow of M&A acquisitions
- build out relationships with all relevant M&A advisors in the space you’re targeting
- setting up a dedicated communication channel, e.g. via Slack, might help speed things up
3) Industry relationships
- industry experts often know the key players in the vertical or the ones who are thinking about an exit. And, even more importantly, they are aware of industry specific trends, events and the attitude of the asset owners
- think of industry blogs, podcasts, influencers, YouTubers, industry experts, speakers at events, etc.
4) Direct outreach
- Set up your target profile and focus on actionable criteria, which you can determine via
(semi-)automated filtering
for example:
– eCom, FBA-only
– $100k-300k EBIT
– focus US
– category: sports
– min 4, max 20 products with avg. 4.5 stars
- Compile a long list of assets that would be a fit
- prioritize them, e.g. according to weighted criteria or based on first traction
- reach out via various channels. Evaluate. Optimize.
5) Inbound leads
- put yourself out there
- ramp up content marketing
- focus on the channels you’re asset owners are using as well
Last step:
Build out a solid lead management to keep track of
the leads and the progress. Use a centralized approach to ensure comparability of the deals in your pipeline
Search. Negotiate. Close!
And repeat 🙂
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